Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. (14 points) Fill in the 14 blanks (marked with capital letter) in the table. You can use parentheses or a minus sign to indicate
2. (14 points) Fill in the 14 blanks (marked with capital letter) in the table. You can use parentheses or a minus sign to indicate negative numbers in costs. Please calculate to four decimal places of all discount rate blanks, and hold one digit after decimal point in percentage format when you calculate the ROI. Year of Project Year 0 Year 1 0 1 Year 2 2 Year 3 3 Year 4 4 Year 5 5 COSTS One-time Cost Recurring Cost TOTAL Discount Rate @12% Yearly PV of Costs Cumulative PV of Costs ($42,500) $0 $0 $0 $0 ($5,000) ($5,000) ($5,000) ($42,500) ($5,000) ($5,000) ($5,000) 1 0.8929 0.7972 A ($42,500) ($4,465) D ($42,500) ($46,965) F ($54,510) $0 $0 ($5,000) ($5,000) ($5,000) ($5,000) 0.6355 B ($3,178) E G(560,524) BENEFITS Increased Sale Cost Reduction TOTAL Discount Rate @ 12% Yearly PV of benefits Cumulative PV of benefits $0 $0 $0 $20,000 $5,000 $25,000 0.8929 $22,323 $22,321 $20,000 $5,000 $25,000 0.7972 $19,930 K $20,000 $5,000 $25,000 H $17,795 L $20,000 $5,000 $25,000 0.6355 $15,888 $ 75,934 $20,000 $5,000 $25,000 I 1 $0 $0 J $90,119 Yearly NPV Cumulative NPV ($42,500) $17,858 ($42,500) ($24,644) $15,944 M $14,236 $5,537 $12,710 $18,247 $11,348 $29,595 Return on Investment N
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started